MCX Copper under fresh selling; Support seen at 418

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Technically Copper market is under fresh selling as market has witnessed gain in open interest by 9.22% to settled at 17906 while prices down 2.5 rupees.

Now MCX Copper is getting support at 418 and below same could see a of 416 level, And resistance is now likely to be seen at 423.3, a move above could see prices testing 426.6.

Copper on MCX settled down 0.59% at 419.95 tracking weakness in LME prices dropped below $6,000/mt levels as US-Sino trade uncertainty weighed.

On Thursday, the U.S. government had added Huawei and 68 entities to an export blacklist that makes it nearly impossible for the Chinese company to purchase goods made in the , escalating Sino-U.S. trade tensions and weighing on prices for industrial metals.

The global world refined copper market showed a 74,000 tonnes surplus in February, compared with a 33,000 tonnes deficit in January, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

In an interview, , president of the St. Louis , said that he was worried about low core inflation and added that he would get more aggressive in pushing the FOMC to lower the policy rate if low inflation persisted.

“On the inflation part of our mandate our preferred measure of inflation which is core PCE inflation is only running at 1.6% year-over-year,” Bullard explained. “This is a concern to me. I do think that this number plus relatively low inflation expectations warrant attention from the FOMC.”

“If low inflation turns out to be persistent, I’ll get more aggressive in pushing the FOMC to lower rates in reaction and try to recenter inflation expectations at 2%,” said Bullard. The US private sector’s mounting debts pose a “moderate” risk to the world’s largest economy, Federal Reserve Chairman Jerome Powell said.

Trading Ideas:
–Copper trading range for the day is 416-426.6.
–Copper prices dropped tracking weakness in LME prices dropped below $6,000/mt levels as US-Sino trade uncertainty weighed.
–The global world refined copper market showed a 74,000 tonnes surplus in February, compared with a 33,000 tonnes deficit in January.
–Fed’s James Bullard, said that he was worried about low core inflation and added that he would get more aggressive in pushing the FOMC to lower the policy rate if low inflation persisted.

Courtesy: Kedia Commodities

Source: Commodityonline.com